Enforcement Directorate (ED) has seized assets worth INR 70 crores linked to the Rose Valley group, under the provisions of Prevention of Money Laundering Act (PMLA), 2002. Rose Valley Group has been on ED’s radar since 214 for running a Ponzi Scheme.
Crux of the Matter
ED Digs New Ties On Monday, ED attached three accounts – St. Xavier’s College Kolkata, Kolkata Knight Riders Sports Pvt Ltd, and Multiple Resorts Pvt Ltd, for their alleged involvement in Rose Valley scam. The value of movable and immovable assets attached to these firms is around 70.11 crores. During the investigation, the department has disclosed that Rose Valley company had raised INR 17,850 crores from the public luring them with massive interest returns. Rose Valley lacked a practical business model that could pay returns. FIRs and charge sheets were filed against Rose Valley group in the West Bengal police station. Department further added, the company diverted and siphoned the amount through cheating and had no real business that could repay this amount. Only 10,850 crores have been refunded to the depositors. “The bank accounts of the three firms that have been attached total Rs 16.20 crore. Besides, 24 acres of land at Ramnagar and Mahishdal in West Bengal’s Purba Medinipur district, a flat at Dilkap Chambers, Mumbai, an acre of land at Jyoti Basu Nagar in Kolkata’s New Town and a hotel of the Rose Valley group have also been attached as part of the latest order,” the ED said in a statement.
Haunting Past Rose Valley Group was found to be involved in unfair activities of money in a probe by ED in 2014. Then, the department had attached jewelry, diamonds, flats and other assets summing up to the amount worth INR 4,680 crores involved in the scam. Fraud amount worth INR 16,000 crores had been dug by the department. Of which 6,500 crores is still unpaid. The director of Rose Valley group, Mr. Gautam Kunda, is under ED custody since 2015. During 2014-15, ED had interrogated Shah Ruk Khan, who jointly owns Kolkata Knight Riders Pvt Ltd along with his wife Gauri Khan and actress Juhi Chawla’s husband Jay Chawla, regarding the violation of the Foreign Exchange Management Act (FEMA) in IPL.
Curiopedia
A Ponzi scheme is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. The scheme leads victims to believe that profits are coming from product sales or other means, and they remain unaware that other investors are the source of funds. A Ponzi scheme can maintain the illusion of a sustainable business as long as new investors contribute new funds, and as long as most of the investors do not demand full repayment and still believe in the non-existent assets they are purported to own. More Info
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